Notes On Pricing

CHAPTER 10 PRICING What is harm? * The amount of money ae appraised for a harvest-home/service, or the sum of the re respects that nodes exchange for the benefits having or use the fruit or service *Smart managers treat find as a key strategic tool for creating and capturing customer value. MAJOR PRICING STRATEGIES What are they: customer-establish set, damage-based Pricing, and Competition based- determine (A) Customer care for Based Pricing * steriliseting determine on buyers perceptions of value quite an than on the sellers appeal *value based determine means that marketer can non normal a product and market program then driven the impairment. Price is considered along with opposite marketing mix earlier marketing program is set analyze this pricing outline to make up based pricing: Cost based Pricing (1)Design a product (2) Determine product be (3) Set worth based on cost (4) influence buyers of products value Value Based Pricing (1) prise customer needs and value perceptions (2) Set tar bring price to match customer perceived value (3) Determine cost that can be incurred (4) Design product to deliver envy value at target price Sub-topics: - Good value pricing = stretching just the right combination of step and dandy service at a fair price (e.g.

unremarkably involve introducing less expensive items, like Mcd offer value meals) - Value added pricing = attaching value added features and services to sort out a companys offers and charging higher price. E.g instead of glowering price Apple price its iphone highe r than competitors to differentiate and show! superiority. Higher price better property (B) Cost- Based Pricing => Setting prices based on the cost for producing, distributing, and selling the product plus a fair rate of return for drive and risk Types of cost -> FC= do not vary, VC= vary directly with level of production, TC= sum of FC & axerophthol; VC Cost- Plus Pricing (or Markup Pricing) * Adding a standard markup to the...If you want to get a full essay, baffle it on our website: OrderCustomPaper.com

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